Held that the provisions of section\u00a041(1)\u00a0required that the amount in question which had ceased to be the liability should have been debited as expenditure in the normal course of business and should be in the nature of trading receipt. Since the assessee had raised the loans for the purposes of business (specifically capital expenditure as required by the RBI guidelines) and had not been claimed as an expense, the provisions of section\u00a041(1)\u00a0do not come into play. Thus, the Commissioner (Appeals) was right in holding that the receipts on buy-back of foreign currency convertible bonds would not fall under the purview of section\u00a041(1)\u00a0of the Act.Relied on CIT v. Mahindra and Mahindra Ltd (2018)404 ITR 1 (SC) \u00a0\u00a0(AY. 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Profits on buy-back of foreign currency convertible bonds-Furnishing certificate of Chartered Accountant-No part of proceeds utilised towards non-capital expenditure-Addition is not justified. [S. 28(iv)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-36020","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9mY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=36020"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36020\/revisions"}],"predecessor-version":[{"id":36021,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36020\/revisions\/36021"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=36020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=36020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=36020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}